2020-08-20-AC-min - Laserfiche WebLink

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08/20/2020 AC Minutes Recreation Department and hotel/motel taxes, because of strong contributions from state aid and the local property tax; ➢ Approximately $10.5 million being turned back from the combination of town and school operating budgets because non-essential expenses were curbed and expenses for operating facilities and overtime were low given that many buildings were closed during the last quarter of FY2020; ➢ Approximately $3.0 million in postponed FY2021 appropriation requests from the FY2020 year-end free cash balance. • In response to questions, Ms. Kosnoff reported the following: ➢ Most contractors were not paid if their work was not performed; the exceptions were for transportation (school buses and Lexpress)because of the potential for increased bid prices if needing to go out to bid again. ➢ The Liberty Ride and Visitors' Center had small deficits. ➢ The only furloughs were for about a dozen people who were running programs in the Recreation Department. ➢ No retirement incentives were adopted, and Ms. Kosnoff was not aware of any positions being eliminated. ➢ New hires included as program improvement requests for FY2021 were put on hold. ➢ The Town is eligible for approximately $5.0 million in Federal Cares Act funding and some other smaller funding programs, but these funds cannot be used to offset lost revenue. They can only be used for COVID-related expenses in excess of amounts budgeted. Approximately $300,000 in eligible expenses were incurred in FY2020, including preparation for the spring virtual Annual Town Meeting (ATM), some overtime associated with COVID-related quarantines, and the Police detail used at the hotel that was used for homeless COVID patients. Eligible expenses in FY2021 include or will include building modifications, purchases of personal protective equipment, substitute teachers who are covering for COVID-related absenteeism, or for an additional school bus that is needed to provide adequate physical distancing of riders. The Town was required to establish separate accounts for Cares Act-related expenses and receipts. Reimbursements are expected to be received in FY2021. Currently the availability of the CARES Act funds expires on December 31, although that termination date may be extended. Other grant monies may become available. FY2021 General Fund, based on information included in material that Ms. Kosnoff shared on the screen: • New growth is expected to be higher than earlier projections. • Although FY2021 budget projections included increases in State aid, the sizable State revenue losses because of COVID suggest there might be a significant decrease in this revenue source. Fortunately, the State recently reported plans to provide level funding of Chapter 70 and Unrestricted aid. Thus, the current projected revenue loss for State aid is small. • Local receipts, which include revenue from meals and hotel/motel taxes, building permits, Recreation Department programs, and other departmental revenue are projected to decrease by approximately $2.1 million. This will have the most significant negative impact on the FY2021 budget. • There were no snow removal deficits carried from FY2020 into FY2021; $400,000 appropriated to cover those potential expenses has been released. 2